The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-23
THE PACIFIC RAILWAYS.

The Commissioners Present Two Reports,
Radically Differing in Character.
Special to the IndianaDolis Jou-na-
NEW YORK, Dec 22.-Tae Tribune this morn
ing publishes the following special:
1.-THE reports OF the Pacific railways commits
sioners were rot sent to Congress to-day (2lstl,
as anticipated. The report of Mr. Pattison is
sweeping document Il recommends that the
entire system of iand-grant roads be thrown
into the hands of a receiver at He
other solution. He says that all ths
roads are bankrupt, and few are paying expenses;
all have been robbed of the money Congress de-
voted TO their aid and that the only course re-.
naming Is TO have the Attorney general directed
to Institute, at once, proceedings in the United
States Courts, on behalf OF the government. TO
take charge OF the properties The report Of Mr..
Pattison is said to be severe on the management
of all the Pacific railroads. particularly the Cen
trail Pacific.
The report of the majority. signed by Com
missioners Anderson and Li,tler. is volunln-
ous document, covering the history of the Pa
cifc railway enterprises from their inception to
the present day. But the most important part
of the document is. of course, the recommends
tions for future action on the part of Congress
and the government. With reference to the
Union Pacific. the commissioners are disposed to
be liberal They say that the road has passed
ont of the control and ownership Of those to
were responsible for the enormous Indebtedness
of the corporation TO the government The
property. they say, is now in the hands OF men
who seem to be running it in the isterests
of the stockholders, the bondholders.
and the government. and long
as they pursue the course they have
adopted, should receive the encouragement Of
the government. Within few years. the de-
velopment of tho Western country is so rapid,
the roads under the Union Pacific management
cannot but become very valuable properties.
and the indebtedness to the government will
undoubtedly be paid in full without embarass-
ment to the corporation or its stockholders.
The commissioners therefore recommend the
passage of something like the Outh hwaIt or Hoar
bill such as was reported from the committee
on the judiciary in the Senate last year, and
from the committee on Pacific railways in the
House. They recommend that the entire in
debtedness of the Union Pacific company to
bonds. to be divided into one hundred in
stallments. and each instailment paid semi
annually. The details of the measure set
forth at length. accompanied by calculation
showing the effect of such a compromise. The
commission does not deal genero usly with
the Central Pacific system. The managers OF
the road charged with having impaired it By
erecting competing lines, to which they have
diverted traffic. Instead of using the revenues
having invested them in other roads in Texas,
Mexico, Oregon and other States and Territories,
and to have even gone into the Republic OF
Guatemala tc build a railroad there. There is
no question in the minds of the commissioners
but that the road could be placed a paying
basis with proper management, but as 1t is run
at present there is no hope of tie government
being able to collect anything from it for years.
at least If ever. The commission recommends
certain amendments to the Thurman act that
will bring the company to terms. and secure the
paynert X. to the sinkin fund of a certain amount
of money annually, regardless of the ret earnings
of the road.